The European Central Bank expects to further reduce negative interest rates with new quantitative government bond purchases.

Laura Hermes

2019-10-17 08:35:00 Thu ET

The European Central Bank expects to further reduce negative interest rates with new quantitative government bond purchases. The ECB commits to further cutting negative interest rates to -0.5%. Also, the ECB refreshes radical monetary stimulus in the form of quantitative-easing (QE) government bond purchases. In particular, the ECB plans to buy €20 billion government bonds each month from November 2019 onwards. As the ECB president Mario Draghi expects to step down in late-October 2019, this key monetary stimulus helps fulfill his landmark legacy about a decade after the global financial crisis of 2008-2009.

Moreover, this strategic move serves as a defensive response to the recent dovish interest rate reductions in the U.S. and other countries such as India, New Zealand, and Thailand. In terms of global monetary policy coordination, these interest rate cuts anchor low and stable inflation expectations and exchange rates worldwide. The ECB can successfully assuage the concern and suspicion that most French and German central bank hawks share in recent times. Yet, the persistent negative interest rates and ad hoc QE government bond purchases draw direct criticisms from UBS and Deutsche Bank. The current monetary stimulus may or may not be sustainable in the long run.

 


If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.

Blog+More

U.S. bank oligarchy has become bigger and more resistant to public regulation after the global financial crisis.

Laura Hermes

2020-02-19 14:35:00 Wednesday ET

U.S. bank oligarchy has become bigger and more resistant to public regulation after the global financial crisis.

The U.S. bank oligarchy has become bigger, more profitable, and more resistant to public regulation after the global financial crisis. Simon Johnson and

+See More

Global climate change can cause an adverse impact on long-term real GDP economic growth.

Dan Rochefort

2019-10-27 17:37:00 Sunday ET

Global climate change can cause an adverse impact on long-term real GDP economic growth.

International climate change can cause an adverse impact on long-term real GDP economic growth. USC climate change economist Hashem Pesaran and his co-autho

+See More

Louis Kaplow strives to find a delicate balance between efficiency gains and redistributive taxes in the social welfare function.

Chanel Holden

2023-07-07 10:29:00 Friday ET

Louis Kaplow strives to find a delicate balance between efficiency gains and redistributive taxes in the social welfare function.

Louis Kaplow strives to find a delicate balance between efficiency gains and redistributive taxes in the social welfare function. Louis Kaplow (2010)

+See More

Addendum on USPTO fintech patent protection and accreditation

Andy Yeh Alpha

2023-01-11 09:26:00 Wednesday ET

Addendum on USPTO fintech patent protection and accreditation

Addendum on USPTO fintech patent protection and accreditation As of early-January 2023, the U.S. Patent and Trademark Office (USPTO) has approved our U.S

+See More

Tony Robbins suggests that one has to be able to make money during sleep hours in order to reach financial freedom.

Laura Hermes

2019-04-27 16:41:00 Saturday ET

Tony Robbins suggests that one has to be able to make money during sleep hours in order to reach financial freedom.

Tony Robbins suggests that one has to be able to make money during sleep hours in order to reach financial freedom. Most of our jobs and life experiences tr

+See More

Stock Synopsis: Pharmaceutical post-pandemic patent development cycle

John Fourier

2024-05-05 10:31:00 Sunday ET

Stock Synopsis: Pharmaceutical post-pandemic patent development cycle

Stock Synopsis: Pharmaceutical post-pandemic patent development cycle In terms of stock market valuation, the major pharmaceutical sector remains at its

+See More